News

posted on 24 April 2008 14:33

Storage and networking silicon and systems supplier LSI reported substantially increased revenues for its first fiscal 2008 quarter but also a net loss.

Revenues rose to $661 million, down from the previous quarter's $741 million, but 42 percent up on the Q1 fy07 revenue of $465 million.

Net loss for Q1 fy08 was $14 million ($0.02/share) which compares badly to the net income of $30 million in Q1 fy07 ($0.07/share).

The net loss included a net charge of $78 million from special items. The first quarter revenue decline was less than expected on better than expected sales of semiconductors for storage applications. But, even so there has been a $44 million negative turn on net income from Q1 fy07 to Q1 fy08. If the special items charge is discounted there would have been a net income of $64 million.

CEO Abhi Talwarkar said: “Our first quarter results mark the third consecutive quarter of revenues that have exceeded expectations and reflect continuing strength in our core business. Stronger than expected sales of our SAS and SAN silicon partially offset the effects of normal seasonality while the longer-term benefits of our strategic steps and sharp focus on storage and networking continued to grow.”

“During the quarter we also won significant new silicon designs in the hard disk drive and server spaces and announced an innovative new family of single-chip, low-cost content inspection processors for security and networking applications which is receiving strong interest."

Looking forward LSI expects to make $650 - 680 million in Q2 fy08 and a loss of $0 - 0.08/share. Hopefully it will make a profit over the whole of fiscal 2008.